Staying ahead of the market means more than just watching the headlines. The Guppy Multiple Moving Average (GMMA) technique has become a go-to tool for Australian investors seeking clarity in volatile markets—especially with the unpredictable swings seen in 2025. But how does GMMA really work, and why are more traders and everyday investors embracing it for smarter decision-making?
What is the Guppy Multiple Moving Average?
The GMMA is a technical analysis indicator developed by Australian trader Daryl Guppy. Unlike traditional moving averages that use a single timeframe, the GMMA overlays multiple short-term and long-term exponential moving averages (EMAs) on a price chart. This dual-layer approach aims to reveal the interplay between short-term speculators and long-term investors—giving you a clearer picture of market psychology and momentum.
- Short-term EMAs (3, 5, 8, 10, 12, 15 days): Reflect the sentiment and activity of traders and speculators.
- Long-term EMAs (30, 35, 40, 45, 50, 60 days): Represent the views and actions of investors with a longer outlook.
By tracking the convergence and divergence of these two groups, GMMA helps signal trend strength, potential reversals, and ideal entry or exit points.
Why GMMA Matters in Australia’s 2025 Market
The Australian sharemarket has experienced heightened volatility in 2025, driven by global economic uncertainty, fluctuating commodity prices, and ongoing interest rate adjustments from the RBA. In this environment, investors are looking for more reliable ways to interpret price action and avoid being caught on the wrong side of sudden market moves.
GMMA’s layered approach is particularly useful for:
- Spotting early trend changes: When the short-term group crosses above or below the long-term group, it can indicate a shift in market momentum before it becomes obvious to the broader market.
- Filtering out noise: The multiple EMAs help smooth out random price fluctuations, allowing you to focus on genuine trend shifts rather than temporary blips.
- Improving risk management: By understanding the strength of a trend, you can better time entries, exits, and stop-losses—crucial in an era of rapid, algorithm-driven market moves.
For example, when BHP shares experienced a sharp correction in March 2025, many traders who relied on single moving averages were whipsawed out. In contrast, those using GMMA were able to wait for confirmation from both short- and long-term groups before acting, resulting in fewer false signals and better outcomes.
GMMA in Action: Real-World Application for Australian Investors
Suppose you’re analysing the ASX200 in April 2025. The short-term EMAs begin to rise above the long-term EMAs, with both groups fanning out—this signals a strengthening uptrend. An investor might consider scaling into positions, setting stop-losses just below the lower long-term EMA for protection. Conversely, if the short-term EMAs collapse below the long-term group, it’s a warning that momentum is fading and a deeper correction could follow.
Recent updates to trading platforms like CommSec and SelfWealth now allow users to overlay GMMA indicators directly onto charts, making this strategy more accessible to retail investors. Educational webinars and ASX insights released in 2025 have also highlighted GMMA as a best-practice tool for navigating complex markets, especially for those managing their own superannuation or SMSFs.
- Tip: Combine GMMA signals with volume analysis or other momentum indicators for even greater confirmation before making large trades.
Is GMMA Right for You?
The GMMA isn’t a crystal ball, but it’s one of the best tools for reading crowd behaviour and managing risk in a fast-moving Australian market. Whether you’re trading blue chips, ETFs, or even exploring crypto assets, GMMA provides a visual, systematic way to cut through the noise and stay on the right side of trends. As more Australians take control of their financial futures in 2025, mastering tools like GMMA can be a game-changer for both returns and peace of mind.
